H World Q1: Earnings Beat, Revenue Up 67%, Pend-Up Demand & More

H World Group Ltd HTHT reported first-quarter FY23 sales growth of 67.1% year-on-year to RMB4.5 billion ($652 million), beating the analyst consensus estimate of $628.50 million.
The occupancy rate for all the Legacy-Huazhu hotels in operation was 75.6% versus 59.2% in 1Q22, and Blended RevPAR was RMB210 versus RMB132 in 1Q22.
The operating income for the quarter was RMB664 million or $97 million, and the operating margin was 14.8%.
The company held RMB10.3 billion ($1.5 billion) in cash and equivalents as of March 31, 2023. The operating cash flow in Q1 was RMB1.8 billion ($267 million).
As of March 31, 2023, H World's worldwide hotel network in operation totaled 8,592 hotels and 820,099 rooms, including 128 hotels from DH.
Adjusted EPADS of $0.45 beat the analyst consensus of $0.21.
"The company's solid result in the first quarter was largely driven by pend-up demand, a combination of product mix change and continued product upgrades, as well as market penetration and synergy through regional offices," said CEO Jin Hui.
Outlook: For Q2, H World expects revenue growth of 51% - 55%.
The full-year expectation remains unchanged, with expectation of 1,400 gross hotel openings and 42-46% YoY revenue growth.
Price Action: HTHT shares are trading higher by 2.48% at $38.88 in premarket on the last check Tuesday.

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